On January 01, 2021, ACME Incorporated issued 100,000 share appreciation rights to its officers that entitled them to receive cash for the difference between the fair value of its shares and a pre-established price of $10. The required service period is three years, and the exercise period is three years from the end of the service period. Fair value of the shares and SARs plan (adjusted for actual forfeitures) at December 31 are as follows:

Fair Value (adjusted for actual forfeitures)
	per Share	SARs Plan
Dec 31/21	$15.00	$500,000
Dec 31/22	$16.00	$600,000
Dec 31/23	$19.00	$900,000

ACME assumed that no executives would leave the company during the vesting period. Assume that ACME has a December 31 year end and reports under IFRS.

Required:

Round interim calculations to four decimals and final answers to the nearest dollar. Show calculations to support your answers.

Prepare the journal entries for the period January 01, 2021 through December 31, 2023. (7 marks)

On December 31, 2024, when the shares were trading at $20.00, executives exercised 50,000 SARs. Prepare the required entry. (4 marks